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McDonald’s Canada franchise investigated for labor violations

April 08 2014

A McDonald's franchise owner in Victoria, B.C., is under investigation for allegedly breaking the rules of the Temporary Foreign Worker Program. The Honourable Jason Kenney, minister of employment and social development, ordered the investigation April 3.

"Within 24 hours of becoming aware of these allegations, inspectors from my department did an on-site inspection at the location in Victoria and I suspended all labor market opinions and work permits in process for this franchise pending the outcome of the investigation. The labor market opinions and work permits were suspended as I have reasonable grounds to believe that this employer provided Employment and Social Development Canada with false, misleading or inaccurate information,” Kenny said in a press release.

If the franchise owner, Nasib Services Inc., broke the rules of the Temporary Foreign Worker Program, Kenney will permanently revoke its existing labor market opinions and prevent the employer from hiring more temporary foreign workers.

Under recently introduced changes to the Temporary Foreign Worker Program, the government of Canada can suspend or revoke the LMOs of employers found to be, or suspected to be, non-compliant with the program’s requirements. The names of employers whose LMOs are suspended or revoked will also be added to a new public “blacklist.”

The LMOs issued to The Boathouse Restaurant in Fenelon Falls, Ontario, have been revoked, and LMOs issued to Jungle Jim's Restaurant and Greco Pizza in Labrador, Newfoundland, and to the McDonald's Restaurant franchises in Victoria, B.C., have been suspended.

McDonald’s Restaurants of Canada Limited said in a media statement that it is in the process of terminating its relationship with the franchisee.

“McDonald’s Canada was made aware of serious allegations concerning the employment of temporary foreign workers at one of our independent franchisees’ restaurants in Victoria, British Columbia. We immediately launched our own investigation of this restaurant,” the statement said.

“At McDonald’s Canada, we do not tolerate infractions of any kind – intended or unintended – against any employees. Our commitment to employees is to always do the right thing and with integrity. Our corporate and restaurant employees, as well as our independent franchisees are committed to upholding this each and every day.”

Four percent of the 85,000 employees at McDonald’s Canada’s franchised and corporate locations across Canada are temporary foreign workers. It will immediately review all corporate and franchise-operated restaurants to ensure continued alignment with Service Canada’s requirements of the Temporary Foreign Worker program, according to the statement.

“We will work closely with Service Canada on the audit of the Victoria, BC franchisee, and will ensure all recommendations are met. McDonald’s has a long-standing track record of compliance with Service Canada requirements.”

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